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Letter to the New York Times

February 22, 2002

Letters to the Editor
The New York Times
229 W. 43rd St.
New York, NY 10036

To the Editor:

As I mentioned in my interview with Yilu Zhao, while economic downturns often lead to an uptick in the rate of tuition increase at colleges and universities ("As College Endowments Dwindle, Big Tuition Increases Fill the Void," Feb. 2), the vast majority of students at private institutions will not see their out-of-pocket costs rise nearly as quickly. The generous student aid policies of private colleges and universities mean that few students pay the published price of tuition, and this will temper the annual increase in the costs that students actually pay. In 1999-2000, 84 percent of undergraduate students attending private colleges received some form of financial aid, with an average award of nearly $14,000. Since 1990, institutionally provided aid has grown more than twice as fast as tuition--188 percent vs. 76 percent, respectively.

Private institutions have also redoubled their efforts to control operating costs, while maintaining academic quality, since the last recession in the early 1990s. They have enhanced their operating efficiency through innovative cost-saving changes—including new administrative and academic partnerships with other institutions, and more outsourcing of campus services—to remain affordable. This, along with the wise management of endowments during the 1990s, will help keep tuition increases at the vast majority of private institutions significantly lower than the double-digit rates that were often seen at our colleges 10 years ago, and are now being announced by many public universities.

Sincerely,

David L. Warren
President
National Association of Independent Colleges and Universities